In the Chinese-built coal power plant of Norchcholai, there are more questions than answers.

Waste management causes issues

Hydropower was Sri Lanka’s primary energy source when it gained independence from the British.

The first ever hydropower project, Laxapana, was commissioned in 1950 and is described as an innovative design by Engineer D.J. Wimalasurendra.

Since then, there have been several hydropower projects initiated in Sri Lanka. Under the Mahaweli multipurpose hydro scheme, there are four main hydropower projects. They are Victoria, Kotmale Upper, Kotmale, and Randenigala.Nevertheless, with time and population growth, Sri Lanka could not cope with the available power volume and had to depend on thermal power generated from fossil fuels.

As per CEB’s 2016 generation report released in mid-2017, the country has a total combined installed generation capacity of 4,017 megawatts (MW), of which 2,115 MW (52.6%) was from thermal (900 MW (22.4%) from coal and 1,215 MW (30.2%) from fuel oil), 1,726 MW (42.97%) from hydroelectricity, and the remaining 176 MW (4.38%) from other renewable sources such as wind, biomass, and solar. These generation sources produced a total of 14,149 GWh of electricity during that year, of which 9,508 GWh (67.20%), 4,220 GWh (29.83%), and 421 GWh (2.98%) were from thermal, hydro, and other renewables, respectively.

By the end of 2016, the demand for electricity had increased many times, requiring the government to invest in other energy sources.

Sri Lanka could not opt for more hydro-power projects, mainly due to geographical reasons since most of the waterfalls in the highlands have been exploited for this purpose. As a result, Sri Lanka had to turn to alternative energy sources.

At times, the government was compelled to set up thermal power plants in collaboration with the private sector. In addition, several other thermal power plants have been built solely by private sector firms. In these cases, the government had to enter into power purchase agreements with the private sector in order to provide electricity.

With increasing energy costs, the government looked for cheaper sources of energy and chose coal power.

There are many coal power plants in the world, but most of them are facing closure due to environmental concerns. However, Sri Lanka opted for coal power to provide people with cheap power.

At the time, policymakers ended up choosing coal as a substitute without taking the risks to the environment or society into account. This is because they were only concerned with profit. When they started the project in 2006, it resulted in significant public protests in the Norochcholai area. Due to the area’s cultural and environmental sensitivity, civil society and environmental organizations fiercely opposed the idea of building a coal power plant in Norochcholai.

There was no avail, and the state pushed ahead despite protests by various organizations. These included environmental organizations, the Chilaw Bishop, and the Catholic Church of the Chilaw diocese. The Church pointed out that the damage could be enormous to the environment and could also be harmful to the well-being and health of the people. Despite all that, the government made a decision to move ahead with the project under a Chinese loan facility provided by the Exim Bank. This loan facility was provided to the government of then-President Mahinda Rajapaksa.

The government completed the construction of the power plant in 2011, but experts in the field pointed out that the technology used was fairly outdated and not suitable. The technology used in the power plant was not designed to generate the maximum output of electricity efficiently. Therefore, it was not able to produce the amount of energy that the government expected. Additionally, the technology was becoming obsolete, so it was not cost-effective for the government to maintain the power plant. This is like trying to drive a car that uses outdated gas: it’s not designed to take you very far, and it’s not designed to be very cost-effective. After power generation began, there were so many breakdowns, and the breakdowns sometimes added to the additional power outages.

People in the area were of the opinion that technical errors could of course be repaired, but if power generation affects the health of residents, that is less forgivable.

A few months following the commissioning of the plant, an unidentified skin disease spread among children living near the power plant. In addition, residents have complained about respiratory ailments, kidney disorders, and other health issues occurring near the power plant. In addition, residents have complained about respiratory ailments, kidney disorders, and other health issues. Health issues prevented people from returning to their usual habitats and sometimes affected their occupations.

If a power plant violates standards during construction, it poses a threat to nearby human settlements. All over the world, coal power plants have been identified as sources of environmental and health hazards, no matter where they are located. The Chinese construction of Norochcholai using inferior technology caused irreparable damage to the people in the area and the country as a whole. This prompted the government of President Maithripala Sirisena to give an undertaking that the government would terminate its plans to construct a second coal power plant in Sampur.

Ground Views, a citizens’ journalism website, published an article that listed the environmental and other hazards caused by the Chinese-built coal power plant.

The ground view article is under the caption.

types of pollution as a result of coal power generation, states

Typically, a coal power plant releases tons of ash every day as sludge. There were serious allegations that there were no mechanisms allowing for safe storage and disposal in Norochcholai in particular. If wind-borne, the particles from this sludge can lead to respiratory diseases among nearby residents. It appears that this phenomenon is emerging in Norochcholai. Harmful chemicals such as arsenic, chromium, mercury, and cadmium may be present in the sludge, leading to the spread of diseases. At worst, overexposure could affect nearby residents’ nervous systems, paving the way for memory-related neurological disorders.

Cooling water discharge

Billions of gallons of water are used in the cooling systems of power plants. This water is generally four to five degrees Celsius hotter than normal. Whenever this water is released into any water source, marine life in that area will be threatened. The hotter temperatures affect the environment’s temperature, leading to an increase in algae growth. This can deplete the oxygen in the water and cause fish and other marine life to die. The warmer water can also cause a decrease in the quality of the habitat, making it difficult for marine life to survive. Essentially, heated water affects the heart rate of fish, putting their lives at risk as a result. In February 2017, the National Aquatic Resources Research and Development Agency (NARA) raised serious concerns about whether the Norochcholai power plant was disposing of polluted water into the sea.

Heat waste

A considerable percentage of the heat produced by thermal power plants is wasted. Above all, gas emissions of sulfur dioxide and carbon dioxide can lead to global warming and acid rain. In Sri Lanka, we have not experienced acid rain yet. But, in the future, we may also have to deal with it.

Meanwhile, the North Western Provincial Environmental Authority has noted that the Norochcholai power plant has not applied for an environmental license for 2017. This is necessary to continue their operations.

Currently, Norochcholai generates a significant amount of power that is supplied to the national grid. Hence, it would be rather difficult to shut it down abruptly.

However, the lesson from Norochcholai should be that there should be no more commissioning of coal power plants in Sri Lanka in the future. The Environmental Foundation Limited (EFL), along with other environmental experts, filed a Fundamental Rights (FR) Application against proposed coal power plants in Sampur and Trincomalee based on the adverse effects caused by the Norochcholai coal power plant. It was seen that the state took notice of health hazards that could adversely affect the community.

At the latter stage, the state, acting responsibly, gave an undertaking to the Supreme Court that it would not go ahead with any such project.

The Daily Mirror in 2018 quoting Ecologist Dr Ranil Senanayake said:

The toxic acids that evaporated from the Norochcholai Coal Power Plant could pose a threat to Jaya Sri Maha Bodhi. “This is the oldest living tree in the world with a written history,” ecologist Dr. Ranil Senanayake said.

He said there is a possibility of clouds with toxic acid deposits traveling towards Anuradhapura, where the sacred Bo tree (fig tree) is standing, with southwest monsoon conditions developing.

Sulfur (S), sulfur dioxide (SO2), and nitrogen oxide (NO) are released when coal is burned, as well as heavy metal particles. These elements form acids such as sulfuric acid (H2SO4) and nitric acid (HNO3), which would reach the clouds through condensation.

He said that it can be observed that the leaves of tall trees have turned yellow due to the emissions of these gases.

The Ground View website further said Power and energy are vital for a country to function. Sri Lanka has rich potential in terms of sustainable power. How well have we capitalized on this potential? The Hambantota wind power plant only produces 3 MW of electricity, while the only operational commercial-scale solar-powered facility is the Buruthakanda Solar Park, with 1.2 MW, operated by the Sri Lanka Sustainable Energy Authority (SLSEA). There have been many projects to promote the utilization of renewable energy in this country, but many of them have not been implemented yet. The time has come to end the era of thermal and coal power and transition to an era of renewable energy. The government’s decision to establish a wind power plant is an excellent step and should be appreciated. According to an Environmental Effects Report (EER) that was released recently, there are also environmental issues related to this project. Constructive criticism is needed. However, all stakeholders should support projects such as these, which are relatively eco-friendly, instead of playing devil’s advocate.

Source:ColomboGazette

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Deshapriya reapplies for Chairmanship of Election Commission

Former Chairman of the Election Commission of Sri Lanka Mahinda Deshapriya has reapplied for the position.

This announcement comes at a time where applications are being called from members of the public who possess the requisite qualifications to be appointed as members of several independent commissions, including the Public Utilities Commission of Sri Lanka (PUCSL), the Human Rights Commission of Sri Lanka (HRCSL) and the Election Commision.

Deshapriya served as the Chairman of the Commission from the inauguration of the Commission in 2015 until 2020.

Meanwhile, Speaker of the Parliament Mhainda Yapa Abeywardena stated that the calling of applications for these commissions has ended, and that the relevant new appointments will be made soon.

Furthermore, the National Delimitation Committee, which was appointed with effect from 01 November 2022 until 28 February 2023, with Deshapriya as its Chairman, has requested for an extension of one month.

The request was made by the Committee from Prime Minister Dinesh Gunwardena, in his capacity as the Minister of Public Administration, Home Affairs, Provincial Councils and Local Government, and the President.

Rupee appreciates further as CB tweaks guidance peg

The Sri Lankan rupee further appreciated yesterday, hitting the lowest value against the US dollar since May, last year, amid the Central Bank tweaking the guidance peg.

As per the Central Bank data, the buying rate of US dollars yesterday was Rs.351.72, down from Rs.358.36 on Wednesday. The selling rate was Rs.362.95, down from Wednesday’s Rs.367.93.

The currency dealers cited the increase of daily trading band pertaining to the guidance peg from Rs.2.60 to Rs.5.00 by the Central Bank as the immediate reason that helped the rupee to appreciate against the dollar.
Following the botched free floating of the rupee in March 2022, which resulted in the collapse of the rupee from Rs.200 to Rs.360, the Central Bank repegged the rupee at 360 to the US dollar and introduced a guidance rate based on the interbank rate.

The Central Bank via a communiqué instructed all licensed bank CEOs yesterday to use Rs.358.46 as the middle spot exchange rate of the USD/LKR interbank transactions and variation margin of Rs.5.00 on either side—plus or minus—of the middle spot exchange on March 1, 2023.

It further said the rates applicable to other currency transactions against the Sri Lankan rupee should also be derived based on the new middle spot exchange rate and the variation margin.

Despite the banks being flushed with dollars, lower demand in the domestic forex market may have prompted this move by the Central Bank.

According to the banking sector sources, the average daily volume in the interbank forex market is now about US $ 42 million, compared to US $ 8-10 million in May/June 2022. In February 2018, this used to be around US $ 50 million.

Sri Lanka’s economy is in a deep contraction as a result of the tough measures introduced by the Central Bank and authorities to crush the aggregate demand in the economy by jacking up interest rates significantly to tame inflation, which had gone out of control.

As a result, there is an evident drop in importer dollar demand.

Prospects of Sri Lanka securing the envisaged International Monetary Fund bailout, recent International Finance Corporation announcement of providing US $ 400 million financing to three local banks, reduction in surrender requirement for export proceeds and higher foreign inflows to the country’s equity and bond markets may also have contributed to the recent appreciation of the rupee against the US dollar.

In addition, according to NDB Securities, forex conversions by exporters in anticipation of a further appreciation of the rupee may also have contributed for the rupee to gain.

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Postponement of 2023 LG polls to be debated in Parliament

An Adjournment Debate on the postponement of the 2023 Local Government (LG) election is scheduled to be held on 09 and 10 March.

Accordingly, the two-day debate was decided upon by the Committee on Parliamentary Business (COPB) today (01 March).

The Committee met today under the patronage of Speaker Mahinda Yapa Abeywardena , during which it was decided that Parliament will convene from 07 to 10 March.

Mano asks UK backing for upcountry Tamil community to achieve their rightful place here

Tamil Progressive Alliance (TPA) leader Mano Ganesan, MP, has urged Maya Sivagnanam, Deputy Director of the South Asia Region Department of Foreign Commonwealth Development Office (FCDO) and High Commissioner Sarah Hulton to facilitate their full integration into what he called the Sri Lankan national mainstream polity as ‘full citizens’. The former National Integration Minister said that Britain should use its good offices with the government here to help us to achieve this Sri Lankan goal”.

“The element of British responsibility begins from the fact that the British crown government started bringing us into this country from South India 200 years ago. Since then our people had put in unprecedented hard work and developed the most profitable plantation export industry in then Ceylon and now Sri Lanka.”

TPA leader Ganesan told, Maya Sivagnanam, the FCDO’s Deputy Director of the South Asia Region Department and High Commissioner Sarah Hulton when he and Ceylon Workers Congress (CWC) general secretary minister Jeevan Thondaman met British Diplomats at Westminster house, Colombo.

Mano Ganesan also said:

“But in return, our citizenship and franchise rights to vote were taken away in 1948. Our people were forcibly sent to India from 1964 by Sirima- Shasthri Pact.”

“Hence, His Majesty’s government of Britain today has a moral responsibility towards the wellbeing of our community”

“Please don’t leave it to GoSL and Gov of India only. Indians too have their obligation and responsibility towards us. India is using its good offices, alright, but that’s not enough. We suffer being sidelined from the national mainstream. We require British support too. We strive to achieve just sociopolitical lost grounds within an undivided Sri Lanka.”

“Not less than one third of our community lives in the plantations. They are the most under privileged vulnerable segment of Sri Lanka. The surveys done by UN organizations, WB, ICRC and UNHRC special Rapporteur confirm this sad reality. We request the Government of UK to support our vulnerable segment on Affirmative Action principles.”

“All what we want is for you to help us to become more into Sri Lankan national polity. We wanted to become full citizens. Please use your good offices with GoSL on our behalf.”

The former minister said that British policy should recognize the underlying fact that Sri Lanka is Incomplete without our community.

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100 unions to strike today over tax hikes

Nearly 100 trade unions (TUs) representing several sectors including petroleum, ports, electricity, health, water supply, education, banking, and postal service are to launch a number of trade union actions including a one day token strike today (1), demanding the withdrawal of the tax policies recently introduced by the Government.

Representatives of several trade unions which represent governmental and semi-government institutions such as the Ceylon Petroleum Corporation (CPC), the Ceylon Electricity Board (CEB), the National Water Supply and Drainage Board (NWSDB), the Central Bank of Sri Lanka (CBSL), the Government Medical Officers’ Association (GMOA), the Federation of University Teachers` Associations (FUTA), the Ceylon Bank Employees’ Union (CBEU), the Ceylon Teachers’ Union (CTU) and the Ceylon Teachers’ Service Union (CTSU), which are supporting the trade union actions including the one day token strike today, commented on their plans to the media.

The Sri Lanka Freedom Employees’ Union – Petroleum Co-Chairman Jagath Wijegunaratne said that the trade unions within the CPC would fully support the trade union actions, including the one day token strike. He added that the activities pertaining to the supply of fuel could be disrupted due to the trade union action, noting that therefore, the Government led by President and Minister of Finance, Economic Stabilisation and National Policies Ranil Wickremesinghe should be held responsible for all inconveniences which may be caused to the public.

Ranjan Jayalal, who was representing the trade unions within the CEB, said: “We, the trade unions of the CEB, have expressed our full support for this struggle against the Government’s unfair tax policies and other issues which have arisen in the country at present. A crisis situation may arise regarding the maintenance of the power supply to consumers due to this trade union action. The Government should accept full responsibility for such a situation.”

The NWSDB Employees’ Union General Secretary H.D. Leelaratne told the media that they too would support the trade union action including the one day token strike today. He said that almost all trade unions of the NWSDB would launch trade union actions at every regional office of the NWSDB.

The Joint Ports’ Trade Unions’ Alliance Co-Convenor Niroshan Gorakanage said: “As we announced before, we will be launching a strike from 7 a.m. tomorrow (1 March) to 7 a.m. the day after tomorrow (2). During the strike, all operations such as the loading and unloading of goods and the movement of ships will be halted. It will definitely happen. It is not what we wanted, but what the Government needed. So, we had to make that decision.”

CBEU President Channa Dissanayake said that a total of 18 State and private banks would launch a one day token strike from this morning (1). He said that all 12 private banks which are members of the CBEU would join the strike, so that the operations of the entire banking sector would be halted today. The CBSL Employee’s Union President Sarath Ratnayake said that all trade unions within the CBSL would be collectively participating in the strike in line with the Trade Union Collective’s decision. He assured that almost 100% of CBSL employees would be participating in the strike against the Government’s tax policies.

FUTA Media Spokesman Dr. Charudaththa Illangasinghe also said that the university teachers of all State universities would join the strike today. He said that they have decided to support the trade union action as the Wickremesinghe-led Government is continuously ignoring their demands, claiming that such reforms (the tax policies in question) should be introduced in order to obtain assistance from the International Monetary Fund.

When contacted by The Daily Morning, the GMOA’s Media Committee Member, Dr. Hansamal Weerasuriya said that the GMOA, at its Central Committee meeting held yesterday (28 February) afternoon, had decided to fully support the trade union actions, but that they would not launch a strike, having realised the difficulties which would have to be undergone by the patients. “We are fully supporting the struggle against the Government’s tax policies, but we have to think of the people too. They are not responsible for what is done by the Government. Therefore, we will take action which will cause minimum inconvenience to the public. However, if the Government continues to ignore our demands, we will be taking stricter actions by next week,” he said.

Leading teachers’ trade unions including the CTU led by Joseph Stalin and the CTSU led by Mahinda Jayasinghe have also decided to support the trade union actions. They however will not engage in a strike. “We, the teachers and principals, have decided to fully support the trade unions’ struggle against the Government’s programme. If it does not heed our demands even after this, we will be left with no other option but to launch continuous trade union action,” said Jayasinghe, who was speaking at a media briefing. Meanwhile, the CTU President, Priyantha Fernando said that the teachers and principals would support the trade union actions today by wearing black attire. He said that their main demands include the complete resolution of the teacher-principal salary anomalies, the provision of a travelling allowance to teachers, the reduction of the cost of living, and the provision of the necessary financial provisions for schools without delay.

The President of the Sri Lanka Postal Workers’ Union, Chinthaka Bandara said that they too would support the trade union actions by reporting to work in black attire today. However, they would not engage in a strike action today, and have instead decided to launch a strike on 8 March.

Meanwhile, President Wickremesinghe had, on 27 February, signed a Gazette notification, declaring several services related to the ports, airports and passenger transport services as essential services, with immediate effect. According to the President’s Media Division, the special Gazette had declared public transport services for passengers or goods, the discharge, carriage, landing, storage, delivery and removal of articles of food or drink, or coal, oil and fuel from vessels within any port as defined for the purposes of the Customs Ordinance (Chapter 235), and the provision and maintenance of facilities for transport services by road, rail or air, including roads, bridges, culverts, airports, ports and railway lines, as essential services.

Holding a protest in front of the Colombo Fort Railway Station on 22 February, the aforesaid trade unions vowed to make the Government led by Wickremesinghe roll back the tax policies that it recently introduced. They had also declared a “black week” of protests from that day, demanding that the tax revisions in question be revoked, and be replaced with fair revisions. In view of the black week, employees of public institutions reported for duty in black attire, wearing black armbands, while black flags and banners had been hoisted at several State institution premises.

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Vistara airlines to resume operations to Sri Lanka

Starting from Wednesday, March 1, 2023, Vistara Airlines will recommence its flight operations to Sri Lanka, as announced by the Bandaranaike International Airport (BIA) in Katunayake. Vistara is a joint venture between Tata Sons Pvt. Ltd and Singapore Airlines and is commonly known as Tata SIA Airlines Limited.

According to the statement issued by the BIA, Vistara will resume its operations from Katunayake airport, specifically between Colombo and Mumbai, India, starting from today. This is great news for travelers who are looking for a comfortable and reliable flight service to and from Sri Lanka.

Why Should We Beg IMF? – When More Than $36 Billion To Be Recovered By W. Vishnu Gupta

A recent visit to Sri Lanka, confirmed that it was very easy to convert Rupees into US dollars at any banking counter in the departure lounge of BIA, and it is strange in a country where people are told there is no foreign exchange to import medicine, and other essential food items until IMF gives a loan. Furthermore, it appears that there is no truth to the claims made by the government about the lack of foreign exchange because every imported luxury item that the rich has got used to during last 75 years is readily available in the market. When a Sri Lankan rich man or woman is afflicted with any life-threatening sickness or even a minor skin irritation, they freely seek treatments in Singapore, Dubai, Bangkok, or India, and they appear not to bother about the foreign exchange mantra chanted daily by the politicians including the president in the parliament and in other external forums. Obviously, a few filthy rich fellows have stashed away, specifically US dollars in offshore accounts under various pretexts. Under this background, the recent wishy-washy statement made by parliamentarian Wimal Weerawansa about the loopholes in the foreign exchange management laws and the revelations of young women lawyers’ association in Colombo about the foreign currency stashed away in the offshore bank accounts by the exporters warrants further investigations. It appears every politician who entered the den of thieves and criminals, officially known as the parliament since 1952, elected and unelected presidents, and the CBSL are privy to this grand scheme of hoarding national wealth in foreign countries. The stories about alleged money laundering activities of Gamini Dissanayake’s family in Australia, Bandaranaikes in the UK, Aluthgamage in the UK, Rajapaksas in Uganda, Dubai, Seychelles and China, likewise other politicians in Singapore and the link between Ranil and Mahedran and Paskaralingam may be just the tip of the iceberg. All Central bank chiefs, particularly the political appointees of Prime Ministers and Presidents seem to have knowingly participated in the dubious act of letting the individuals and exporting companies siphon or stashed the foreign exchange that should be brought into the state coffers otherwise, for instance Panama Papers must be a hoax. According to Sunday Times of July 2022.

“An investigation carried out by the Global Finance Integrity (GFI); a think tank based in Washington, USA operating with government support. Its task is to keep an eye on the export trade of countries of the world. GFI observes whether money is properly exchanged between two countries during a trade. According to its observations, between 2009-2017, the Government of Sri Lanka (GoSL) has not received more than US$ 36 billion due from exports. The money is held offshore.”

What a catastrophe, Sri Lanka is an $81 Billion economy and more than one-third or $36 Billion is hidden in foreign countries by a selected vile bunch of businessmen supported by correspondingly vulgar political leaders with willfully designed porous legislations approved by equally disgraceful parliament of the country. No government so far has taken concrete actions to bring this mind-boggling amount of money back to Sri Lanka, but they have forced the citizen to go through untold misery by cunningly and abruptly disrupting the supply chain of medicines, medical equipment, essential foods, energy products, and other critical raw material including fertilizer. Many have died and thousands of patients are in their death throes while temporarily elected government and the president appointed by 134 MPs are threatening the state with gloom and doom scenarios and instilling fear in the psyche of citizens with the possibility of energy crisis, food crisis and health crisis. The GFI report clearly says that they publish their conclusions after researching extensively and analyzing the data of Sri Lankan customs, export registers, and import registers of countries. Hence no one should claim that the findings are false or inaccurate. For obvious reasons, Ranil and Rajapaksas have never uttered about the excesses committed by their families and business buddies responsible for hording of alleged $36 Billion in foreign countries, but it should baffle the economists and the intelligentsia, why IMF has not raised this matter reported by GFI in Washington with the present government.

Sri Lanka officially records about $1.1 -1.2 Billion export earnings per month and similarly tourism earnings should average around $400-500 million per month excluding the millions of foreign exchanges earned by somewhat slippery and controversial entities such as SLC, Avant-Garde and hundreds of currency exchange shops in Colombo and Negombo. The citizens ought to know what happens to these enormous amount of foreign exchange earnings that comes under the jurisdiction of the state. Clearly, the central bank is inept, yet should we allow a bunch of unscrupulous businessmen, politicians, and sleazy organizations to live lavishly and enjoy tamashas while rest of the country is told IMF is the only solution. Unfortunately, neither Sajith, nor AKD, the front runners of the ongoing outlandish political campaign have ever spoken about this hidden wealth. What is the rationale behind begging for $2.8 billion loan from IMF while not taking any actions to retrieve $36 billion stashed away in foreign countries by a handful of embezzlers.

As per the Foreign Exchange Control Act of 2017, the money related to export trade should be sent back to Sri Lanka without delay within a period of six months. It is a conventional law adopted by every legally established state in the world and the central bank, reserve bank or the monetary authority of the state is held responsible for managing this inflow of foreign currency according to the laws of the state. Central Bank’s primary objective is to stabilize the currency and economy while limiting inflation. Sri Lankan CB seems to have neglected its responsibilities mainly due to political interferences of Ranil and Rajapaksas. The present chairman Nandalal and all those before him, Coomaraswamy, Cabraal, Lakshman and Mahendran have done nothing innovative so far to manage affairs of CBSL, which possess privileged control over production and distribution of money and credit for the nation. As expected Nandalal a political lackey has trivialized and questioned the findings of GFI, at the Parliamentary Committee on Public Finance meeting on January 23rd.

“Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe has disregarded and trivialised the extent of illicit financial flows through trade mis-invoicing in instigating Sri Lanka’s ongoing foreign exchange and fiscal crisis.”

The credibility of CBSL is tainted and highly questionable, CBSL chiefs have failed to ensure fiscal stability in Sri Lanka, bond scams and unsavory political links at the highest level do not add any credence to the policies and assurances made by politically contaminated highest monetary authority in Sri Lanka, hence one should not question the accuracy and integrity of GFI report on Sri Lanka.

Nevertheless, the state of Sri Lanka must hold these political minions responsible for not ensuring uninterrupted inflow of foreign currency (US dollars) earned through exports and other related business transactions in recent years. It is a forgone conclusion, that Nandalal, his predecessors and their political masters’ arrogant conduct and nonchalant answers to the economic and financial crisis has exacerbated the dire economic situation encountered by majority in Sri Lanka since 2019. Compared to politically independent CB chiefs in other Asian developed countries, the government cronies implanted to manage our central bank seem to carry the hallmark of economic bookworms sans practical knowledge but well versed in political trickery.

It was a cheap trick, Mr President By N Sathiya Moorthy

President Ranil Wickremesinghe’s so-called disclosure that the Election Commission (EC) had not declared the local government election (LGE) legally, smacks of political skull-drudgery of a kind that his name h as evinced through much of his long political career. As the Head of State and Government, and also the senior-most parliamentarian along with TNA’s Sampanthan but with vast and varied politico-administrative experience, it was his duty to have corrected the EC when it fixed the LGE for 9 March without quorum. It is this quality of his that friends and foes alike fear at one-level, suspect him at another level and hate him for what he may not deserve otherwise.

According to Ranil, only two of the three independent EC members attended the meeting that decided the LGE date. Media reports too had indicated as much but no one took it seriously, as a third member, making up the quorum, had approved of the decision, post facto and on-line. A fourth member, Mrs P M S Charles, quitting office in between would not matter to the conduct of LGE, it was said. But absence of quorum was a different matter altogether.

In this, the question also arises if commission Nimal Pumchihewa erred, and deliberately so. If so, it also raises questions about his motive and also the propriety of his continuance in the high office. Anyway, in the absence of a new panel appointed by the Constitution Council, revived by the 22nd Amendment the incumbent was rendered lame-duck to say the least. The question thus arises if they should have at all initiated a move, which has become legally untenable and indefensible. If nothing else, the EC has not refuted the President’s claim or charge, as the case may be.

Yet, none of it could absolve the government, especially the President, of leading the nation up the ‘garden path’ (?) on the LGE. It was a cheap trick, after all. And if the Opposition calls him a ‘liar’ or has ‘gone insane’, they may be rude, yes. But as one of them said, Ranil’s declaration that the LGE was not legally declared was the ‘height of absurdity’, yes. Yet, the President may not be wide off the mark. It makes his silence when he remained silent on the LGE date issue not behove either of the high office, or the person holding it. Full-stop.

The EC has now said that they would announce a new date for LGE on 3 March. Well said, and also maybe well-intentioned, too. However, political parties are not sure that the government would want the local government elections any time soon. They should know. When in power, all those parties, barring the JVP, had conspired with the very same President, when the latter was Prime Minister, to divine reasons and reasons, to delay the provincial council polls, as if they wanted to deny the democratic opportunity to their people.

Stop knocking…

Hence for the Opposition to cry foul and appeal to the international community to pressure the government to hold LGE here and now may be as politically immoral or amoral as Ranil’s late-discovery about the illegality of the polling date. More importantly, from a larger national perspective, they should stop knocking the doors of the international community for what essentially are domestic issues.

They need to look at the mirror first, and also news sources, to find out if in any other country, the political Opposition has been in the practice of inviting trouble by indulging the international community (read: West) with its angularities and preferences. Of course, this government team cannot blame them for it, as former President Mahinda Rajapaksa, who while in the SLFP Opposition parent, had camped in Geneva, to complain against the UNP government for rights violations. It was very long back that he might have even forgotten it. Rather, he would love the nation to forget it.

Of course, the government’s fears about facing the people has been brought out by a recent opinion poll that puts the leadership’s popularity at a woefully low 10 per cent, down from 18 per cent, the last time round. However, the President’s standing has marginally improved. The contest for the leadership is said to be between JVP’s Anura Kumara Dissanayake (AKD) and SJB’s Sajith Premadasa, 32-31 per cent. In another poll weeks earlier AKD’s standing for presidency stood at a substantially high 48 per cent.

Hurting more

It is in this background, calls for Mahinda to return as Prime Minister need to be understood. It is a now-or-never battle for Mahinda personally, though he still can hope that the Rajapaksa clan can weather the current politico-electoral storm with a lot of unsolicited help from their adversaries. But there are also aides of his erstwhile President-brother, Gotabaya Rajapaksa who want Mahinda to retire from active politics and settle down peacefully.

More than such suggestions, it is reported that China wants Mahinda back is what could hurt the Rajapaksas’ chances mightily just now. After the China-funded ‘white elephant’ debts and the unspeakable disaster of their ‘organic fertilizer’ policy and supply, no Sri Lankan, however loyal to Mahinda otherwise would want to touch him with a barge pole.

There may still be a silver-lining for the Rajapaksas, however, if Gota, who went over to China could claim on return that he had convinced Beijing on debt-restructuring for the nation to be able to avail of IMF funding facility, followed by the rest. Alternatively, China should independently rush to the nation’s rescue as it has done recently in the case of Pakistan. If it happened it would have geo-political implications. At the same time, if Gota returned empty-handed, which he most likely is to be, he would have to explain to the nation, as to what his China trip was all about. That could hurt the Rajapakas more than already.

(The writer is a policy analyst & political commentator, based in Chennai, India. Email: sathiyam54@nsathiyamoorthy.com)

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US Senate Committee urges SL Govt. to hold elections without further delay

The U.S. Senate Committee on Foreign Relations has urged the Government of Sri Lanka to hold a “free and fair” local authorities election without further delaying the matter.

In a tweet, the chairman of the committee Senator Bob Menendez denounced any effort to take away the voice of the people of Sri Lanka as “undeniably undemocratic” and “a direct violation of Sri Lankans’ rights”.

The U.S. Senate Committee on Foreign Relations is a panel that oversees executive agreements with foreign countries and provides advice and consent on diplomatic nominations and treaties. The chairperson of the committee consults with foreign dignitaries and counsels presidents while playing a significant role in the conduct of U.S. diplomacy.

On February 24, the Election Commission of Sri Lanka announced that the 2023 Local Government polls would not be held on March 09 as scheduled, due to matters beyond its control. The new dates for the polls are expected to be announced this Friday (March 03).

The postponement of the local authorities election sparked multiple protests in parts of the island, largely in Colombo as it was met with the objection of the political parties in the opposition.

Citing the ongoing economic crisis, the government of President Ranil Wickremesinghe has insisted that the elections cannot be funded.